Oshkosh product in the JLG access equipment segment

Oshkosh Corp reports sales in its JLG-branded access equipment segment were ahead of expectations for the fiscal year's fourth quarter ended 30 September.

"Our US access equipment customers continue to replace their aged equipment and have already begun to place large orders for calendar 2012," says Charles L Szews, president and chief executive officer. "While we are encouraged by this outlook, we are mindful that we need to stay close to the market to monitor business trends."

Szews notes that Oshkosh access equipment sales to external customers in the quarter "were up more than 60% and orders were up more than 90%, both compared to the prior year quarter". The sales were strongest in North America and parts of Europe.

Across the entire access equipment segment, Oshkosh reports quarterly sales of USD673.5 million versus USD536.8 million in the comparable period last year.

The segment's 30 September backlog exploded to USD729.2 million in 2011 from USD197.1 million in 2010.
Szews says the US access equipment market continues to rebound.

"We've recently been discussing 2012 requirements with many of the larger national rental companies," he notes. "Replacement demand and increased rental penetration continue to be the primary drivers for our growth in this segment."

Strong utilisation rates, improved rental rates and higher used equipment values give US rental companies the confidence to upgrade their fleets, Szews says. "We're also seeing some pull forward of telehandler orders in advance of diesel engine emission standards changes next calendar year. As we explained on our third quarter conference call, the European access equipment market is on the path toward recovery but is running behind the US market in terms of timing."

Szews sees global potential for access equipment "in emerging markets in construction, mining and infrastructure applications".

Oshkosh continues to make progress from the economic slowdown. Access equipment reports fiscal 2011 sales of USD2.05 billion, well below fiscal 2010 sales of USD3.01 billion.

David M Sagehorn, executive vice president and chief financial officer, adds, "We continue to view fiscal 2012 as a transitional year characterised by a continued rebound in our access equipment segment."

Sagehorn suggests operating income margins in the access equipment segment will be in the mid to upper single digits in fiscal 2012. "The higher material costs experienced in this segment in the fourth quarter are expected to continue to impact us in fiscal 2012, but we expect the recently announced JLG price increase to offset much of the cost increase starting in our second fiscal quarter."

Companywide in its 1 November security filing, Oshkosh reports profit of USD273.4 million on unaudited fiscal-2011 sales of USD7.58 billion versus profit of USD790.0 million on fiscal 2010 sales of USD9.84 billion.